ONE STOP CAPITAL CAN HELP ANY INVESTOR IN THE TECH COMPANY SECTOR
How can One Stop Capital help a technology sector investor? The senior management team at One Stop Capital has deep understanding of the technology markets having started, operated, financed and exited multiple middle market companies as well as larger, global companies in the network technology space. With this deep experience, we can help an investor source, analyze and fund a smaller set of better performing companies within their space. Whether you need competitive technology analysis, or go-to-market comparisons, or marketing-operational-financial audits of an organization, we can help.
SO HOW CAN WE SPECIFICALLY HELP YOU?
FIRST, WHAT’S THE MANAGEMENT PEDIGREE? My first and foremost questions are always with the quality of the founding managers. Have they been there before? Were they successful or did their previous venture tank? We can help investigate the critical managing team in a target organization and provide you with key information on their background, skills, performance and commitment within the technology industry.
If you are looking to be actively involved with a company’s operation, One Stop can determine if there is a fit or that needed chemistry between their senior management and you and your team.
What are you looking for in management? Share what you think makes a great startup manager and whether its passion, fearlessness or adherence to accounting principles, we will help to match with the right investment.
SECOND, WHAT IS THEIR COMPETITIVE EDGE? A truly unique service or category killer may be hard to find but they are still a few diamonds in the rough out there if you know where to look. Maybe the edge comes from just having a unique distribution channel for their SW application that gets revenue going in a hurry? Or an exclusive marketing license or a newly found niche target market? How about a brilliant acquisition that remains hidden to the masses? Or a radical new way of thinking about cybersecurity across networks and quickly being awarded a patent for it?
We can help by asking the right questions to determine a company’s competitive edge within a very crowded tech marketplace littered with similar ideas. Can this save your firm valuable time and money? Like my old professor used to shout, “the possibilities are endless!”
THIRD, SHOW ME THE NUMBERS! One Stop capital can discover, inspect and present you with the necessary numbers to support your decision with an equity investment through a family office or a debt investment through a banking partner. Regardless if the transaction involves one technology company or a series of companies that have complimentary technology or operations, we can help identify an opportunity for higher returns and clarify multiple exit strategies.
Is the target investment financially stable? We can find out since entrepreneurs often are predisposed towards optimism when it comes to historical as well as future revenue and related numbers. Cut through the hype and determine real numbers. How many units do they have to sell in a worst-case scenario? When does the company have to secure additional funding and in what time window? Will they be able to meet their coming payables? What is their real cost per client acquisition? What cash flow is needed for existing or future obligations? Do they have the assets to support debt financing? What other future liabilities can be expected? We can help you analyze all these critical items in the ever-changing technology landscape.
FOURTH, IS THEIR BUSINESS MODEL WORTH YOUR INVESTMENT DOLLARS? Obviously, if they are already turning a nice profit, then the proof is in the pancakes, but what if they are just not quite there because of some other limiting factor that needs the additional capital? Perhaps, a friendly acquisition is in the wings that can jump-start revenue… or the last phase of pending SW and product development… or building a sales team and going international… or any number of strategic initiatives that can propel a company upwards but require a capital injection to progress.
On the other hand, there is your profile as an investor. What are your top interests and timeline? Is your emphasis on a huge market, proprietary software, or tight control over cost accounting? Are you looking to triple your money in 2 years as an angel or satisfied with a safe and consistent, solid return over 10 years? Different investors want different investments and we try to match you accordingly with the target investment company.
FIVE, HOW BIG IS YOUR POND? Do you want to be the shark in a small niche market or the minnow in a huge consumer mass market play? Usually, as part of the Venture Capital or Private Equity segments, you may be looking for a solid business plan, good management, and an existing client base to generate revenue growth in any body of water. However, as an angel Investor, you may be searching for a huge target market or products which address major challenges within a large market with the accompanying extraordinary returns.
One Stop Capital can provide clear insight into the fundamentals of an investment and into the size of a specific technology market. These skills require a combination of specialized tech-industry expertise as well as a global reach within industry media, C-level suites and technical advisors. Only after lots of research, asking lots of questions and then interpreting the results, can we provide you with the valuable answers necessary to support your multi-million-dollar investment in a specific company. We will get the answers that you need. Thank you.